Correlation Between Janus Growth and Flexible Bond

Can any of the company-specific risk be diversified away by investing in both Janus Growth and Flexible Bond at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Janus Growth and Flexible Bond into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Janus Growth And and Flexible Bond Portfolio, you can compare the effects of market volatilities on Janus Growth and Flexible Bond and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Janus Growth with a short position of Flexible Bond. Check out your portfolio center. Please also check ongoing floating volatility patterns of Janus Growth and Flexible Bond.

Diversification Opportunities for Janus Growth and Flexible Bond

0.5

Correlation Coefficient

Janus Growth  Flexible Bond

Very weak diversification

The 3 months correlation between Janus and Flexible is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Janus Growth And and Flexible Bond Portfolio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Flexible Bond Portfolio and Janus Growth is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Janus Growth And are associated (or correlated) with Flexible Bond. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Flexible Bond Portfolio has no effect on the direction of Janus Growth i.e., Janus Growth and Flexible Bond go up and down completely randomly.

Pair Corralation between Janus Growth and Flexible Bond

Assuming the 90 days horizon Janus Growth And is expected to generate 2.27 times more return on investment than Flexible Bond. However, Janus Growth is 2.27 times more volatile than Flexible Bond Portfolio. It trades about 0.03 of its potential returns per unit of risk. Flexible Bond Portfolio is currently generating about 0.04 per unit of risk. If you would invest  6,326  in Janus Growth And on November 19, 2024 and sell it today you would earn a total of  904.00  from holding Janus Growth And or generate 14.29% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Janus Growth And  vs.  Flexible Bond Portfolio

Janus Growth And

Risk-Adjusted Performance

Very Weak

Over the last 90 days Janus Growth And has generated negative risk-adjusted returns adding no value to fund investors. In spite of latest weak performance, the Fund's technical and fundamental indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the fund investors.

Flexible Bond Portfolio

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Flexible Bond Portfolio are ranked lower than 3 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong essential indicators, Flexible Bond is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Janus Growth and Flexible Bond

The main advantage of trading using opposite Janus Growth and Flexible Bond positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Janus Growth position performs unexpectedly, Flexible Bond can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Flexible Bond will offset losses from the drop in Flexible Bond's long position.

The idea behind Janus Growth And and Flexible Bond Portfolio pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.